Reference no: EM13793887

1. Suppose we want to compare this year's GDP with those of previous years. As we go back in time - to 1980, to 1970, to 1960, and to still earlier years - what happens to the validity of these comparisons? Why does this happen?

2. If our GDP rose from 11,000 to 11,500, there could be a few different explanations. List each of these possibilities.

3. Which has been increasing faster, GDP or real GDP? Explain your answer.

4. "Americans enjoy the highest standards of living in the world." Discuss why this statement is not perfectly accurate.

5. Under what circumstances could real GDP for a given year be greater than GDP for that same year? For example, if 2015 were the base year and 2016 were the current year, how could real GDP in 2016 exceed GDP for 2016?

6. Explain how GDP is affected by the sale of:
a new house.
an hour session with a physical trainer.
1,000 shares of AT&T.
an antique rolltop desk.

7. If you were comparing the economic well-being of two countries and had a choice of using one of the following four measures, which one would you choose and why would you choose it?
GDP
Real GDP
Per capita GDP
Per capita real GDP

8. Do you think we should switch from using GDP to GPI as our basic measure of national well-being?

9. You have just been hired by the Bureau of Economic Analysis of the U.S. Department of Commerce to come up with an improved measure of national output. Use GDP as your starting point.

10. Which country has the highest per capita GDP and which country has the lowest?

PART II: JOURNAL ACTIVITY

Web Field Trip

Directions: Please visit the following two websites:

· GDP (https://www.bea.gov/index.htm)
· United Nations Human Development

Then answer the questions below. Please provide detailed and elaborate responses and ensure that your responses are a minimum of 100 words each and include examples from the reading assignments or personal experience, if possible.

1. Find the most recent data on GDP growth by visiting GDP for the most comprehensive accounts through U.S. Department of Commerce, Bureau of Economic Analysis. Then compare the growth rate of GDP components including C, I, G, net exports and inventories.

2. Using the United Nations Human Development, please compare GDP, GDP per capita, and overall well-being in different countries. You should look for countries that are ranked differently depending whether GDP per capita or "human development" is the criterion.